Israeli Firms Partner for $1.3 Billion Advanced Industries Park in Ashkelon
Translated & summarized from Globes by baba
Nadav B. Logistics and Awz have partnered to acquire land in Ashkelon for approximately 400 million shekels to build an advanced industries park, including chip factories. The total investment is expected to reach 5 billion shekels, with Nadav B. Logistics handling real estate and Awz investing in chip technology. The project aims to bolster Israel's technological and economic independence, with construction expected to begin within two years.
The story in 6 lines · by baba
- Nadav B. Logistics and Awz will invest 5 billion shekels in an advanced industries park in Ashkelon.
- The park will include chip manufacturing plants and is a response to the October 7th events.
- The land acquisition for the park is valued at approximately 400 million shekels.
- Awz will invest an additional 3.5 billion shekels in chip technologies and equipment.
- Construction of the industrial buildings is planned to commence within two years.
- The project aims to enhance Israel's technological and economic independence.
Nadav B. Logistics, led by founder Nadav Bilila, and the investment group Awz, which includes former IDF Chief of Staff Aviv Kochavi, have signed an agreement to acquire land and construct industrial facilities in Ashkelon. The site is designated for an advanced industries park, intended to house chip manufacturing plants among other facilities. The land acquisition is valued at approximately 400 million shekels ($108 million USD).
The initial phase involves the joint purchase of rights to about 67 dunams (16.5 acres) from the Israel Land Authority, with an option to expand to 113 dunams (28 acres). Nadav B. Logistics will focus on the real estate aspect, investing an estimated 1.5 billion shekels ($405 million USD) in constructing the industrial buildings, which will include clean rooms and auxiliary structures for long-term lease to defense and civilian companies. Construction is slated to begin within two years.
Awz, a Canadian-Israeli investment group, plans to invest an additional 3.5 billion shekels ($945 million USD) in chip technologies and factory equipment, forming partnerships with international firms. The total investment for the project, encompassing both real estate and technology, is projected to reach approximately 5 billion shekels ($1.35 billion USD).
The Awz chip company intends to establish several factories within the park, focusing on chip technologies for communications and photonics, with components intended for AI infrastructure, quantum computing, and aerospace and defense sectors. The park will also feature an academic research institute for advanced technologies and personnel training, as well as a startup incubator.
Nadav Bilila stated the deal marks a significant entry into advanced and defense industries, expanding the company's operations and establishing new long-term growth engines. He cited business considerations and a Zionist vision to strengthen industry and employment in southern Israel, emphasizing the importance of advanced manufacturing infrastructure in strategic areas like chip production to reduce reliance on foreign sources.
Yaron Ashkenazi described the park's vision as a strategic national response to the October 7th events, aiming to bolster Israel's security, technological, and economic independence. He highlighted its role in fostering collaborations between leading Israeli and international defense and civilian industries, and nurturing groundbreaking Israeli deep-tech innovations in critical supply chain areas.
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